Karnataka Loan Scheme For Self Help Groups [SHGs] Application Form, Process, Loan Amount and Interest Rate [Eligibility Criteria]
The state government takes several steps to ensure that poor and needy people get a better shot at life. Self-help groups are organizations, which help such people to develop their skills. These skills will assist them to start their own ventures on a small scale. The Karnataka government has designed a new credit scheme that offers a considerable amount as credit to these self-help groups. Only such organizations will be able to apply.
|Name of the scheme||Credit Scheme To Encourage SHGs|
|Launched by||HD Kumaraswamy|
|Date of announcement||October 2018|
|Target beneficiaries||Self-help group members|
|Loan Amount||10 lakhs|
|Interest Rate||0% [5lakh]. 4%[5Lakh]|
Key features of the scheme
- Development of SHGs – Self-help groups are very important, especially in villages. There are several self-help groups in urban areas as well, which offer technical and theoretical knowledge to poor people. With the special scheme, these self-help groups will receive finical help in the form of credit.
- Financial assistance – The scheme highlights that Karnataka government will offer as much as 10 lakhs to each applying self-help group.
- Interest rate – The state government will not charge any interest for the first 5 lakhs, offered under the credit scheme. For the remaining 5 lakhs, applying SHGs will have to pay an interest art 4% only.
- Money transfer via SHGs – Individual applicants will not be entertained under this scheme. The state authority will sanction the credit via self-help groups. The money will be spent by these groups for technical training.
Eligibility and documents necessary for application
- Residential requirement – All interested applicants have to be legal residents of this state. Karnataka government will not allow residents of other states, living within its borders, to get these perks. Submitting residential papers is a must for interested candidates.
- SHG registration – Only registered Self-help Groups will be able to apply for this special loan scheme. All registration papers have to be furnished for scrutiny by applying SHGs.
- Permanent member – It is mandatory for the person to be permanent member of the the registered SHGs to get financial assistance under this scheme.
How to get application form and apply for the project?
Karnataka government has only made preliminary announcements of this project. It is still to come out with all details regarding application form and enrolment process. When it does, you will be the first to known about it on this site.
Self-help groups play an important part in the development of men and women in rural areas. They teach and pave the path for self-employment. With this scheme, registered self-help organizations will be able to speed up their developmental tasks. The financial aid will allow them to attain necessary resources.